As the world aims to start drinking only healthy beverages, beverage giant PepsiCo is taking an aim to Coca-Cola’s premium water brand Smart Water; Which is the brand dominating the premium water market right now, worth $2.8 in the U.S alone. So, it’s about high-time for PepsiCo to step up its game and penetrate the premium water market as well.
The brand PepsiCo announced to be launched next year will be called LIFEWTR. It is a bottled purified water that is pH balanced with electrolytes. This brand will be debuted at an industry conference in New York City, and by February of 2017, we can expect these LIFEWTR bottles to appear on store shelves.
The launch of the brand LIFEWTR will be kind of the trailblazing symbol of PepsiCo as a corporation entering a dramatic brand makeover. The company has announced alongside of this new water brand, that at least two-thirds of the company’s global beverage portfolio volume will have 100 calories or fewer from added sugars per 12-ounce serving. LIFEWTR of course, is the epitome of healthy beverages, as a premium sourced bottled water with zero calories and added sugar or preservatives.
Now, some of us may be itching to call out the fact that PepsiCo indeed has a big bottled water brand already – Aquafina, which already dominates the $185 billion global bottled water market. But it is not to be confused with a brand in the premium water segment. The bottled water industry is separated by price and branding just like every other beverage categories. Aquafina is sold for cheap in bulk compared to premium water, such as Smart Water, which is often sold in single units. Marking up the price of a premium water brand even higher than regular bottled water only means one thing, more marketing.
PepsiCo is prepared to do just that with their new brand LIFEWTR. Brad Jakeman, president of PepsiCo’s Global Beverage Group said “What we see developing is a premium water segment of the water category, driven heavily by millennials,” and what Jakeman says millennials want is sleek bottle designs and labels, ones they can view as a fashion accessory. To do so, PepsiCo is really trying to differentiate its LIFEWTR from its competitors such as Smart Water and Perrier. For the label of LIFEWTR, it will change several times a year to feature different artists who have a background in graphic design or photography. The artists already contributed to the labeling designs are MOMO, a mural artist, transatlantic duo Craig & Karl, and large-scale painter Jason Woodside. Chief Marketing Officer of PepsiCo North America beverages states “We believe the biggest equity of this brand is the label… We think it’ll connect with consumers on a more inspirational way.”
Jakeman claims that PepsiCo is looking to achieve a billion in annual sales one day with LIFEWTR. We will just have to wait and see the results.